Students at Doubleview Primary School may have to share their school grounds with another school to make way for the new City Beach College.

They may live in the "Education State", but Victorian public school students received $2253 less state and federal government funding than the national average in 2013-14.

The Productivity Commission's report on government services, released on Thursday, shows that Victorian state schools received $13,924 in government funding per student in 2013-14, down from $13, 969 the previous year.

This compared to a national average of $16,177.

Real government funding per private school student has increased at twice the rate of funding for state school students, according to Trevor Cobbold, a former Productivity Commission economist and the head of public education advocacy group Save Our Schools.

Advertisement

He said that between 1998-99 and 2013-14, government funding per private school student increased by 39 per cent compared with only 17 per cent for public schools.

"Government funding increases over the past 15 years have been misdirected," he said. "Funding increases have favoured private schools who enrol less than 20 per cent of all disadvantaged students."

Australian Education Union Victorian branch president Meredith Peace said the widening funding gap between Victoria and other states –which has blown out from almost $2000 to $2253 in a year– was "extremely concerning".

She said the figures highlighted the need for the Turnbull government to commit to the final two years of the needs-based Gonski funding scheme.

The report only includes six months of funding under the Gonski deal.

"Chronically underfunded" Victorian schools are struggling to provide the programs and support that students need, Ms Peace said.

"This is about our kids futures and they all need an opportunity. We will continue to see widening achievement gaps between students while our schools receive the least funding."

A spokesman for Victorian Education Minister James Merlino said the cost of educating a student in a small, densely-populated state like Victoria was very different to states with remote, sparsely populated areas.

"The Andrews Labor government is committed to increasing funding which will help make our schools even better," he said.

Monash University senior education lecturer Dr David Zyngier described the figures as a "disgrace".

"The fact that Victorian schools are still holding their line in national testing is a remarkable achievement that can only be put down to teachers and schools," he said.

"How much better would our public schools be achieving if they were resourced to the national average?"